Robert Half International Inc (RHI)
Working capital turnover
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 6,416,490 | 6,668,700 | 6,933,560 | 7,152,300 | 7,246,140 | 7,284,310 | 7,161,310 | 6,878,200 | 6,461,620 | 5,995,740 | 5,473,040 | 5,001,040 | 5,110,270 | 5,343,560 | 5,706,820 | 6,115,820 | 6,078,200 | 6,022,480 | 5,936,540 | 5,877,170 |
Total current assets | US$ in thousands | 2,297,140 | 2,328,110 | 2,378,100 | 2,252,320 | 2,285,110 | 2,249,850 | 2,260,740 | 2,272,040 | 2,268,550 | 2,233,750 | 2,053,230 | 1,873,920 | 1,842,740 | 1,853,680 | 1,720,150 | 1,606,660 | 1,628,850 | 1,631,180 | 1,564,920 | 1,532,020 |
Total current liabilities | US$ in thousands | 1,235,110 | 1,276,280 | 1,276,570 | 1,148,310 | 1,216,200 | 1,234,250 | 1,266,870 | 1,289,030 | 1,358,670 | 1,341,600 | 1,196,310 | 1,076,590 | 1,046,630 | 1,052,780 | 977,167 | 913,354 | 940,692 | 977,440 | 909,510 | 900,730 |
Working capital turnover | 6.04 | 6.34 | 6.29 | 6.48 | 6.78 | 7.17 | 7.21 | 7.00 | 7.10 | 6.72 | 6.39 | 6.27 | 6.42 | 6.67 | 7.68 | 8.82 | 8.83 | 9.21 | 9.06 | 9.31 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,416,490K ÷ ($2,297,140K – $1,235,110K)
= 6.04
Working capital turnover is a financial ratio that indicates how efficiently a company utilizes its working capital to generate sales. A higher working capital turnover ratio signifies better efficiency in managing working capital.
Analyzing the data provided for Robert Half Inc, we observe fluctuations in the working capital turnover ratio over the past eight quarters. The working capital turnover for Q4 2023 was 6.02, indicating that the company generated $6.02 in revenue for every dollar of working capital invested during the quarter.
Compared to the previous quarters, the working capital turnover ratio has shown a decreasing trend from Q1 2022 to Q4 2023. The trend suggests a potential decrease in efficiency in utilizing working capital to generate sales. However, the company has maintained a relatively consistent range between 6.00 to 7.00, indicating a consistent level of efficiency over time.
Further analysis and comparison with industry benchmarks or historical data could provide insights into the company's working capital management effectiveness and help in identifying potential areas for improvement.
Peer comparison
Dec 31, 2023